Retail sales growing but slowing

Retails growth is still in positive figures, despite a drop from 1.6 percent in July to 0.6 percent in August, seasonally adjusted. The deceleration of the economy is one indicator that should prompt the Reserve Bank to cut rates when it meets next week.

However, manufacturing activity declined in September, according to the Australian Industry Group (AIG) performance of manufacturing index. It was the fourth month in a row of contraction.
 
“'The ongoing decline in new orders reported in the Australian PMI suggests that the weakness in manufacturing is likely to persist, particularly with employment growth showing signs of losing momentum,” stated AIG chief executive Heather Ridout.